Percy finance can assist with all of your vehicle/ transport finance.

💡 Introduction: What Is Business Finance?

Business finance refers to the various funding options available to support business growth, manage cash flow, and invest in new opportunities. Whether you’re looking to purchase equipment, expand your operations, or cover short-term expenses, understanding the different types of finance available is essential.

In this guide, we’ll explain the most common types of business finance, answering frequently searched questions to help your business find the right solution.

✅ 1. Asset Finance

What is asset finance?
Asset finance is a funding solution that allows businesses to acquire essential equipment, vehicles, or machinery without paying the full cost upfront. Instead, you pay in manageable instalments over a set period.

Types of asset finance:

  • Hire Purchase (HP) – Spread the cost of an asset over monthly payments, with ownership at the end.

  • Finance Lease – Rent the asset for a fixed period without owning it.

  • Operating Lease – Similar to a finance lease but for a shorter term, with lower payments.

  • Refinancing – Unlock capital by refinancing existing assets.

Best for:

  • Purchasing vehicles, machinery, or IT equipment.

  • Businesses wanting to preserve cash flow while acquiring assets.

💷 2. Business Loans

What is a business loan?
A business loan provides a lump sum of money that you repay with interest over a set period. It can be used for various business purposes, including expansion, purchasing inventory, or managing cash flow.

Types of business loans:

  • Secured Loans – Backed by assets (property, vehicles) as collateral, often with lower interest rates.

  • Unsecured Loans – No collateral required but may have higher interest rates.

  • Short-Term Loans – Typically repaid within 12-24 months, ideal for temporary cash flow needs.

  • Long-Term Loans – Extended repayment terms, suitable for large investments.

Best for:

  • Expanding your business or funding larger projects.

  • Managing day-to-day expenses with short-term loans.

💡 3. Invoice Finance

What is invoice finance?
Invoice finance allows businesses to unlock cash tied up in unpaid invoices, improving cash flow. Instead of waiting for customers to pay, you receive an advance on the invoice value.

Types of invoice finance:

  • Invoice Factoring – The lender manages your sales ledger and collects payment from customers.

  • Invoice Discounting – You retain control over invoice collection but receive an advance on the funds.

Best for:

  • Businesses with slow-paying clients.

  • Improving cash flow without taking on new debt.

🚗 4. Vehicle Finance

What is vehicle finance?
Vehicle finance enables businesses to acquire cars, vans, or fleets without large upfront costs. It includes various leasing and hire purchase options.

Types of vehicle finance:

  • Hire Purchase (HP) – Pay in instalments with the option to own the vehicle at the end.

  • Contract Hire/Leasing – Long-term rental with fixed monthly payments.

  • Vehicle Refinancing – Release capital by refinancing existing vehicles.

Best for:

  • Businesses looking to build or upgrade their fleet.

  • Companies needing cost-effective vehicle solutions.

🔥 5. Commercial Mortgages

What is a commercial mortgage?
A commercial mortgage is a long-term loan secured against property, typically used to buy business premises or refinance existing loans.

Types of commercial mortgages:

  • Owner-Occupied Mortgage – For businesses purchasing their own premises.

  • Commercial Investment Mortgage – For purchasing properties to rent out.

  • Refinance Mortgage – To release equity from existing properties.

Best for:

  • Purchasing or expanding business premises.

  • Property investors seeking rental income.

⚙️ 6. Merchant Cash Advance (MCA)

What is a merchant cash advance?
An MCA is an advance against future debit or credit card sales. You repay it through a fixed percentage of daily card transactions, making it a flexible option for businesses with fluctuating income.

Best for:

  • Retail or hospitality businesses with regular card sales.

  • Seasonal businesses needing flexible repayments.

💻 7. Bridging Loans

What is a bridging loan?
A bridging loan is a short-term loan designed to “bridge the gap” between purchasing and selling an asset. It provides immediate cash flow until long-term financing is secured.

Best for:

  • Property developers or investors.

  • Businesses needing fast, short-term funding.

💳 8. Trade Finance

What is trade finance?
Trade finance supports import and export businesses, providing funding for the purchase of goods before they are sold. It helps manage cash flow and reduce payment risks.

Best for:

  • Importers and exporters.

  • Businesses with complex supply chains.

📈 9. Working Capital Loans

What is a working capital loan?
A working capital loan is designed to cover short-term operational expenses, such as payroll, rent, or inventory.

Best for:

  • Managing temporary cash flow shortages.

  • Covering day-to-day expenses.

🔑 10. Development Finance

What is development finance?
Development finance is specifically for property developers, providing short-term funding to cover land purchases and construction costs.

Best for:

  • Property developers and construction firms.

  • Businesses needing short-term project funding.

🚀 Why Choose Percy Finance?

At Percy Finance, we offer tailored finance solutions to suit your business needs. Whether you’re looking for asset finance, business loans, or invoice finance, we can help you access the funding you need to grow.

✅ FCA authorised and trusted finance broker
✅ Fast and flexible funding solutions
✅ No upfront costs on approved deals
✅ Expert guidance every step of the way

📞 Get in Touch Today!

If you’re considering finance for your business, contact Percy Finance for expert guidance and tailored funding solutions.
📞 Call us at 01675 624901 or get a free quote online today.